US Agrees to Lesser Duty Rate for Importer's Axle Covers in 3 CIT Cases
The U.S. agreed to classify importer Jing Mei Automotive (USA)'s rear drive axle covers and front axle covers under Harmonized Tariff Schedule subheading 8708.70.60, dutiable at 2.5%, according to stipulated judgments the government and Jing Mei filed in a trio of cases at the Court of International Trade (Jing Mei Automotive (USA) v. United States, CIT #'s 14-00281, 14-00060, 14-00003).
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CBP initially classified the goods under HTS subheading 3923.50.00, dutiable at 5.3%, which covers plastic stoppers, lids, caps and other closures. Instead, the goods will be classified under subheading 8708.70.60, which covers wheel covers and hubcaps for vehicles.
The stipulations come after the trade court last year issued a decision in another case brought by Jing Mei in which it said axle covers fall under heading 8708 under General Rule of Interpretation 1 (see 2402270047). The judge said the terms stoppers, lids and caps work to "contextualize each other term" and give each other meaning, making them "closures." As a result, the axle covers, which cover the ends of the axles on 18-wheeler-type trucks, are not "stoppers," "lids" or "caps" as set in heading 3923.